Stock fact sheet · data as of
Sempra (SRE): fair value, margin of safety and Wheel Score
Utilities · Diversified Utilities · United States · Defensive
Is SRE undervalued?
Sempra (SRE) closed at 81.99 on 16 Oct 2026, 50% above the GLS average fair value of 54.49. 5 of the 6 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 6 models range from 30.53 (Lynch) to 88.69 (Graham Growth). That spread is typical: growth-based methods such as GLS Growth and Lynch run ahead of the asset- and dividend-based ones when earnings are growing, and the average splits the difference.
The nightly engine files SRE under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for SRE
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | - | - | Present value of the projected free cash flows, discounted at the cost of capital; no value tonight |
| Graham Number | 62.64 | -24% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 88.69 | +8% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 30.53 | -63% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 67.78 | -17% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 38.51 | -53% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 38.75 | -53% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -52.06 | -163% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 97.00 | +18% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health SRE scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 2.9 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 2.7%, ROE 5.8%, ROA 1.7% - with debt at 1.15 times equity and negative free cash flow.
The dividend yield is 3.19% at a payout ratio of 73%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Gas 49%, Electric 42%, Other revenues 9% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 10/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 2.7% |
|---|---|---|---|
| GLS Moat | 2.9 / 10 | ROE | 5.8% |
| Debt / equity | 1.15 | ROA | 1.7% |
| Free-cash-flow yield | -9.8% | Payout ratio | 73% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 10 / 10 |
Wheel Score 52: Fair
SRE scores 52 out of 100 on the Wheel Score (Fair band, 50-64): a usable but unremarkable fit for the wheel strategy. The parts: Value 0/25, Health 16/20, Moat 4/15, Premium 12/20, Stability 20/20. Value (0/25) is where the points are missing.
Implied volatility is 27% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (12 of 20 points). Chain open interest is 17,561 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 3.5M shares a day on a market cap of $53.6B, with a beta of 0.56 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 20 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -50% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 4 / 15 | moat 2.9/10 | |
| Premium | 12 / 20 | implied volatility 27% | |
| Stability | 20 / 20 | 3.5M shares/day, $53.6B cap, beta 0.56 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 4 Nov 2026 (before the open), 19 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Diversified Utilities
The 9 companies below are the closest to Sempra by market cap within the Diversified Utilities industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| AQNB Algonquin Power & Utilities Corp. | 25.63 | 17.93 | -43% | 31No options | $18.8B |
| BIP Brookfield Infrastructure Partners L.P. | 37.27 | 26.64 | -40% | 48Weak | $17.2B |
| SREA Sempra | 18.83 | 25.71 | +27% | 39No options | $12.3B |
| AES The AES Corporation | 14.97 | 45.69 | +67% | 76Good | $10.7B |
| BIPH Brookfield Infrastructure Finance ULC 5 % Notes 2021-24.05.81 Global | 15.33 | 28.60 | +46% | 39No options | $5.6B |
| AQN Algonquin Power & Utilities Corp. | 5.20 | 3.35 | -55% | 53Fair | $4.0B |
| AVA Avista Corporation | 36.18 | 37.49 | +3% | 65Good | $3.0B |
| UTL Unitil Corporation | 53.20 | 34.16 | -56% | 48Weak | $970M |
| TVC Tennessee Valley Authority | 23.82 | 17,297.56 | +100% | 39No options | $13M |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about SRE
Is SRE undervalued right now?
No: at 81.99 the stock trades 50% above the GLS average fair value of 54.49 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of SRE and what does it mean?
SRE scores 52 out of 100 (Fair). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for SRE?
54.49 per share as of 16 Oct 2026 - the simple average of the 6 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Sempra report earnings next?
The next earnings report is due on 4 Nov 2026 (before the open), 19 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does SRE have listed options, and how liquid are they?
Yes. The nightly snapshot found 184 listed contracts with 17,561 open interest across all expiries and implied volatility of 27% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.